SMALL and medium enterprises and individuals who have a tourism-related business can access up to $5 million in loans at a five per cent interest rate for up to five years through the Tourism Enhancement Fund (TEF).

The $100-million loan facility was launched on Monday at the Ministry of Tourism in New Kingston. The aim of the fund is to assist more local businesses to build capacity to adequately meet the demand for goods and services in the tourism industry.

The fund will be administered through the Jamaica National Small Business Loans Limited (JNSBL) under what is called the “Five by Five” Development loan programme. In addition to the $5 million, five per cent, five-year term of the loan, borrowers get a six-month moratorium on the principal and interest is calculated on the reducing balance.

This brings to $300 million the total amount of funding that has been made available by the TEF to local businesses in the last three years. Some $200 million was allocated under the initiative previously, of which approximately $186 million was borrowed.

Minister of Tourism, the Hon Edmund Bartlett says the continuation of the Development Loan Programme is a direct effort on the part of the Tourism Ministry which spurs further growth in the tourism industry.

“This initiative gives energy to a wider policy programme and objective that we have of achieving five million arrivals and earnings of US$5 billion in five years and so we have named this particular loan programme “Five by Five” because it is about providing an additional window of opportunity for the suppliers… the small operators who are producing goods for the industry. Not so much now the small hoteliers or the small attractions, whose capability to attract loans from the established financial institutions are limited,” Bartlett said.

“To be able to access loans at five per cent for over five years is what gives value and true meaning to our objective of enabling a wider group to become involved in the supply chain,” Bartlett added.

General Manager of the JNSBL Frank Whylie beleives fund could help to further develop community- based tourism.

“We have seen tremendous growth in the capacity of small businesses operating in the tourism sector. Many small hotels, attractions and transport operators were able to improve their businesses through the tourism loan scheme, adding facilities and implementing other capacity building projects to increase the competitiveness of their operations,” Whylie said.

Bartlett said the Fund would also help to “broaden the base of ownership within the industry” adding that this could be done by having people appreciate that “ownership doesn’t only mean owning a hotel, but means being able to supply what is required to meet the needs of the visitors who come into the country”.

“Tourism must remain a critical catalyst in the economy enabling job creation and poverty alleviation,” Bartlett said.